Editorial cartoons present a snapshot of things that stood out as important in the past. Most are political in nature. Every so often, something major happened in the stock market that drew the attention of the country and cartoonists captured the moment in a funny way.

Bear markets and crashes were always a big draw and the 1900s produced many. A selection is covered by the cartoons below.

The first came in 1901. Cartoonists captured the speculation and panic caused by the attempted corner of the Northern Pacific Railway. The corner led to one of the largest short squeezes ever, forced short sellers to sell other holdings, and created a panic on Wall Street.

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Optimism is typically in short supply and shrinking fast during bear markets. But it shouldn’t be. If history is a guide, optimism should be rising.

Because every stock market crash in the U.S. recovered. Every recession in this country turned into a growing economy. Every bear market ended. So there’s room for optimism.

Of course, bear markets have a greater impact on your overall returns than any bull market will. Especially, if you abide by the philosophy that the lowest average cost wins.

Bear markets allow opportunistic investors to average down. It’s future wealth creation at its finest.

Every incremental decline in the stock market is another opportunity to buy at lower and lower prices which increases your chances of a higher return in the future.

The dollar-cost averagers out there already take advantage of this, whether they know it or not. But if you’re sitting on cash, waiting for a signal to go all-in in this market, you won’t find it. Those things only show up in the rearview mirror long after the opportunity has come and gone. It’s best to pick your moment, commit to it, and average in. Continue Reading…